Acpal, Rizza Mae
Bundoc, Norielyn
Calapit, Catherine
Marquez, Rachel Ritz
Martinez, Precious Kate
Natividad, Ajiezhel
Ramirez, Julie Ann
Yanuaria, Chee Yan
I. Executive Summary
HOT N’ COLD is a creative business built by wide imaginations of group of people
that will open in Bolinao, Aurora, Isabela. The idea for the business was initially
generated in order to fill the customers’ cravings like corndog and ice scramble in
Aurora that can be offered to the customers.
HOT N’ COLD will provide a variety of good quality products. The corndogs have
two variation which are pure hotdog and half cheese - half hotdog. And, for the size of
the ice scramble, it has three sizes, small, medium and large. For its flavor, it would
vary everyday. The goal of this shop also is to provide gladness and satisfaction to all
costumers of this shop that can be in all ages who is interested to this product.
The business will be making high quality and deliciously flavored ice scramble and
corndog and will bring consistent quality, competitive prices, and product satisfaction
to our customers.
The price of our product will not break your budget. For the ice scramble, the price
ranges from Php 20.00 - Php 40.00. The small size will be Php 20.00, the medium size
will be Php 30.00, and the large size will be Php 40.00. And, for the corndog, the price
ranges from Php 25.00 - Php 30.00. The pure hotdog will be Php 25.00 and the half
cheese - half hotdog will be Php 30.00. The distribution of the HOT N’ COLD products
will be through the facility and door-to-door delivery, and it can be advertised in social
media. This business offers product and service with an affordable cost.
Total annual revenue estimates Php 1, 240, 000 with a fixed investment of Php 250,
000 with an unfixed expenses of Php 600, 000 with an estimated net income of Php
640, 000. Given the cost assumptions, Return of Investment (ROI) and payback are 50%
and 2 years respectively.
The most critical considerations or factors for success of the project are:
1. Choosing the right location for the business
2. Hiring experienced and have good moral personnel
3. Operational product and service quality consistency
4. Satisfactory customer service
5. Quality and hygiene
6. Knowing the competition
II. Study Background
A. Brief History and Background
HOT N’ COLD provides good products for customers.
Owners started their business in May 2021. It all started because of their
fondness in K-culture and cold drinks. During this pandemic, it is so hard to buy
food outside. They cannot go out so they made their own snacks. They made ice
scramble and corndog. They ate it and find out that it taste so good. That gave them
an idea to start a business. So, they decided to make more ice scramble and corndog
and sell it to their neighbors. After that, they noticed that their products are always
sold out. To attract more customers, they came up with an idea of adding more
variations to their products so that the customers will have many choices. And, this
idea made their business more successful.
After a week of operation, their product became more popular and the
product range are wider because there are more sizes and variations to choose from.
They established a branch and called it “HOT N’ COLD”.
B. Missions and Visions
Mission
To offer freshly made corndog and delicious ice scramble that are
universally enjoyed by families and friends and make HOT N’ COLD a part
of everyone’s life. We take pride in working together to provide great
tasting hot and cold products of outstanding value to delight all customers
in a welcoming relaxed meeting place with positive vibes.
Vision
HOT N’ COLD believe in the power of creativity and the skill in finding
answers to become the best seller of ice scramble and corndog products in
Isabela and to continuously create innovation that leads to success.
C. Product/ Service offerings
HOT N’ COLD will carry a variety of good quality ice scramble and corndog as
main products. The sizes for the ice scramble would be small, medium, and large.
And, the corndog will have two variations which are pure hotdog and half cheese -
half hotdog.
III. Macro-Environmental Analysis
A. Economic
The factors affecting consumer purchase and spend pattern, comprise; wealth
per capita; unrestricted income; manufacturing development; money restrictions;
balance of payments; leave of imports / exports; fluctuations in interest and
foreign exchange rates, along with other issues.
B. Politico-Legal
The business met the requirements needed by the government. This is surely
legal and do not violate any laws and regulations.
C. Socio-Cultural
The customers wants the product to be clean and pleasant to their eyes that’s
why HOT N’ COLD is surely dirt-free and will not make the customer unhealthy.
The product is very delicious and can attract the customer’s attention. Because of
the good packaging of the product, the customers will also like to post it on social
media. This product is affordable for everyone.
D. Demographic
The target consumers of this product is everyone. From all ages, it can be the
children, youth, or elders and all those who like to have ice scramble and corndog
as snacks. We know that people like to have foods inspired with K-culture
nowadays along with their favorite cold drink which is ice scramble during this
summer season. That is why our target market are the people in Aurora, Isabela.
E. Technological
The product maybe promoted by using social media platforms such as Twitter,
Instagram, but mostly in Facebook. The social media can make the product more
famous as the best snack stall in town.
F. Natural
Our products are environment-friendly because the ingredients used does not
harm the environment. Also, the food and drink packaging and presentation are
also eco-friendly. HOT N’ COLD is a perfect buy for snacks anytime, anywhere. It is
salable in any weather condition.
IV. Opportunities and Threats
Opportunities Threats
More buyers liking our product People fear that it is not affordable.
More sales and profit Market competitors
Desire to have a freshly made Price wars with the competitors
corndog and delicious ice scramble Competitors might have more
The product can reach customers innovative product than ours
through social media platforms Limited ingredient resources
V. Micro Environmental Analysis
A. The company
Marketing strategies are implemented by this business. The business has an
advertisements on social medias and prints. The marketing strategies like these
can be a great help to the success of the business. We are not the first to introduce
this product in the market but we take an advantage against the other business
because we are the one who added different sizes and variations on it.
B. Suppliers
The business has its own suppliers. They supply materials every week to
assure that there is no shortage for the raw materials.
C. Marketing Intermediaries
The customers can buy at our store called the HOT N’ COLD or through product
door-to-door delivery, depending on the location. It is also highly recommended
that customers may order through our online page and choose their desired
products. It is also highly favorable that the customers should go to the store to see
the products of HOT N’ COLD themselves.
D. Customers
The business’ product is good for all ages. HOT N’ COLD will be directly
engaging with the people in Aurora. The time allotted for to sell is much higher in
the Municipality of Aurora. Customers will be everyone: the kids, teens, and even
adults. When it comes with the kids and teens, their budget are not that high
because they are still unemployed. When it comes with the adults, their budget are
larger compared with the kids and teens.
E. Competition
HOT N’ COLD was the first business to introduce corndog with ice scramble in
Aurora. Few known establishments who also offer products that are a bit similar
with HOT N’ COLD products but theirs are unique because their product is kinda
inspired with the K-culture which is popular nowadays.
F. Publics
HOT N’ COLD primarily aims to build a good relationship with our customers,
distributors and supplier and also manage to deal with them effectively. Second, to
satisfy the wants of the people through buying ice scramble and corndog products
and by means of rendering them good service quality and good tasting ice scramble
and corndog snacks. The business will exert enough effort to maintain good service
and on dealing with the customers we will also acknowledge their opinions
towards our product for improvements.
VI. Strengths and Weaknesses
Strengths Weaknesses
The business has the unity in order Being a food business itself (wide
for them to make the product variety of choices)
efficiently. The business’ product is still new,
The business has many sizes and not yet established (needs rigid
variations for the satisfaction of the marketing promotions)
customers. The business’ product maybe easily
Affordability of product selling spoil.(perishable)
price.
The business’ product is new to the
market which leads to customer
curiousity and therefore let them
try it
VII. The Market
A. Market size
This marketing plan aims to estimate the total market potential for a product.
The beginners in business should know and recognize that first customers can be
included to the people who will likely to buy the product on the years 1 and 2, the
market until year 5 or later. In terms of our study, the approximate number of
customers is 1,500 people. For the quantity of corndogs that every person will buy
is 3. And the number of days in a year is 365. These three will be multiplied and the
approximate number of corndogs will be sold are 1,642,500 corndogs. The market
share of HOT N’ iCOLD from the corndog will be determined by multiplying the
market size by the percent of the share which is 35% and the answer is 574,875.
The market share profit of the business from the corndog is 1,724,625. It was
determined by multiplying the market share by 3. For the quantity of ice scramble
that every person will buy is 5. So, the approximate number of ice scrambles will
be sold are 2,737,500. The market share of HOT N’ COLD from the ice scramble will
be determined by multiplying the market size by the percent of the share which is
35% and the answer is 958,125. The market share profit of the business from the
ice scramble is 2,874,375. It was determined by multiplying the market share by 3.
Lastly, the total market share profit of HOT N’ COLD is 4,599,000.
B. Market needs
HOT N’ COLD is providing its customers with a freshly made corndog and
delicious ice scramble that are unique and pleasing in visual and in taste. HOT N’
COLD seeks to fulfill the following benefits that are important to their customers:
Selection. Have three (3) different sizes for the ice scramble and two (2)
variations for the corndog.
Accessibility. The customer can have a taste of the product with minimum
waiting time (over the-counter) upon choosing from the options to avail.
Customer service. The customer will be impressed with the level of
attention and service that they receive.
Competitive pricing. All products/services will be competitively priced
relative to comparable high-end of all the materials.
C. Market trends
Summer is an undisputed season for consumption of cold drinks and other cold
products. One of these include ice scramble which can be a good way to enjoy the
summer. HOT N' COLD offers ice scramble with three different sizes and flavors. Also, it
has various toppings for the customers to fully enjoy the product.
People nowadays are very fond in K-culture so the business made this as an
opportunity to sell Korean foods like corn dogs. It has two variations which are pure
hotdog and half cheese - half hotdog.
VIII. Marketing Objectives
• To double digit growth rate of customers for each future year.
• To provide satisfaction to all customers.
• To make the product popular to all ages.
• To have more branches in the province.
• Make our product memorable to customers.
• To develop more unique and delicious ice scramble and corndog
• To maintain an impressive product promotion for customer patronage
and loyalty
IX. Marketing Strategies
A. Product/Service strategy
1. Target Market
HOT N’ COLD sells products that is made for all. It can be for children,
teenagers and adults who is interested to ice scramble and corndog as snacks.
HOT N’ COLD is perfect for customer who wants snacks during their leisure
time or break time. Also, this product is the first ice scramble and corndog stall
in Aurora. These products are available anytime to give anyone a satisfying
effect. HOT N’ COLD is made up for the customer who like hot and cold snacks
in their lives.
2. Brand positioning
HOT N’ COLD is known for its wide range of choices. “ Hot or Cold, we’ve
got you covered” is the chosen tagline for HOT N’ COLD, for they sell products
that will make you really fall in love with it, anytime and anywhere you want it.
It is important to meet the satisfaction of the customer. The product is of high
quality and is very affordable. The business is open to all interested customers.
B. Pricing Strategy
In the beginning of the business, we would apply promotional pricing for
our pricing strategy where we can lower the price of our product in order to
reduce trial and to encourage customers have repeat purchase. Assuming that
the business will continuously grow and be famous in public, it is the time to
change the pricing strategy into going rate pricing strategy where the price of
the product will be the same level as to our competitors. This will maintain the
price competitiveness of the product in the market.
C. Distribution Strategy
HOT N’ COLD target market is the whole of Aurora vicinity with its thirty-
three (33) barangays. Even though it is a small municipality, it is growing
because of the different businesses that had been established well. The
distribution of the HOT N’ COLD products will be through the facility and door-
to-door delivery, and it can be advertised in social media. They will not wait for
a long time because it is made fast. Retailing will be allowed in this product.
The retailers are the one who will sell the goods to the final customers. The
store will be located in Bolinao, Aurora, Isabela.
D. Advertising and Promotion Strategy
HOT N’ COLD communicates with customers about its products in a variety
of ways. Information about HOT N’ Cold products—is available in the Internet,
or visiting the store personally. The firms’ promotional efforts also seek to give
more information about the first HOT N’ COLD products that will be released
through the media. The shop will adopt to meet greater demand by increasing
staff to make sure the store is visited more frequently. HOT N’ COLD staff
works unexpectedly fast and make a very satisfying result.
X. Tactical Implementation
TACTICS OPERATING DETAILS TIMETABLE
Hire trained store Hiring must be special, only those person April 2021
personnel that has experience and training are
accepted to have better product and to
maximize customer service.
Create a website To promote and inform the target market April 2021
of the product and for them to know that
our product is existing and to make the
product more popular in everyone's mind
Create To make a nearer way in making good April 2021
promotional tools relationships between the business and the
target customers
Find sponsors To increase the sales and popularity of the May 2021
business specially the product
XI. Marketing Budget
Marketing Budget, 2021
Advertising expenses, which include the following:
Radio Php 100, 000
Posters Php 50, 000
Fliers Php 50,000
Ice Scramble and Corndog Equipment and Materials Php 100, 000
Construction Materials Php 300, 000
TOTAL: Php 600,000
XII. Feedback and Control
Action Plan: Establish A branch in nearby town
Timetable: May 2021
By the start of May 2021 we aim to complete the building of our branch as well as
the interior and exterior design. By this time, we should be ready to operate since it is
the best month because school days will begin. Regarding to the factors that can delay
the construction such as weather, insufficient workers, and lack of budget, we are open
to any changes but we will aim to successfully open in our target date.
Action Plan: Hire store crews
Timetable: May 2021
Before the end of May 2021, crews must have already been screened and
prequalified for establishing branch on nearby town. If this deadline will not be meet,
the owner of the store will contact a local employment agencies to fill up the position.
Training would be practice immediately. This process will continue until we completed
the number personnel and crews needed.
XIII. Financial Projections
1. First Year Sales of Php 1,244,000 Php 290, 000 sales in second
Php 320, 000 sales in first quarter
quarter
Php 300, 000 sales in third
quarter
Php 300,000 sales in fourth
quarter
TOTAL ANNUAL REVENUE:
Php 1, 240, 000
TOTAL ANNUAL EXPENSE: Php 700, 000
NET INCOME = REVENUE - EXPENSES
NET INCOME = Php 1, 240, 000 - Php 600,
000
NET INCOME = Php 640, 000
